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How Two-Wheeler Loan Works?


Key Highlights:

  • Opting for a bike loan allows you to choose from a variety of two-wheeler models with sound engineering, high mileage, safety features and more.
  • The bike loan process is simple and easy to follow. Shriram Finance offers two-wheeler loans starting at 11.5%* p.a. with minimal documentation.
  • Many lending institutions offer reasonable Equated Monthly Instalment (EMI) schemes, making loan payments manageable and affordable.

Did You Know?

In India, the two-wheeler loan market is expected to reach $ 12.3 billion by 2025. This estimate not only highlights the overall popularity of the segment but also signifies a change in mindset. People are now more inclined to research and spend their hard-earned money on fuel-efficient, environment-friendly bikes.

Having a comfortable daily commute is important nowadays because many people work in fast-paced and efficient environments. Two-wheelers provide the flexibility for individuals to manage busy routines, enabling them to fulfil their commitments.Applying for a two-wheeler loan might be the best decision you make today!

Through this blog, we will try to understand two-wheeler loan process, their advantages and most importantly, how to apply for one.>/p>

Why Should You Opt for a Two-Wheeler Loan?

1. Wide range of options:

With the rapid advancement in two-wheeler manufacturing, numerous premium models enter the market regularly. A bike loan provides the necessary funds to buy the bike you desire, with favourable interest rates and payment terms.

2. Affordable EMIs:

Many banks and non-banking financial companies (NBFCs) offer reasonable Equated Monthly Instalment (EMI) schemes, making the loan payments manageable and affordable.

3. Tax benefits:

If you are using the bike for business purposes, by showing the EMI payments as expenditure in your tax returns, you can even claim depreciation and tax exemption on the loan interest.

4. Building a favourable credit score:

Opting for a bike loan, securing it and repaying it on time can help improve your credit score. This can be beneficial when applying for future loans, such as a home loan or personal loan.

5. Affordable:

These loans are affordable as interest rates are proportionately low even when loan amounts are high.

6. Manageable repayment plans:

Several repayment tenures are available, allowing buyers to use or redirect funds comfortably to meet other expenses without defaulting on two-wheeler loans.

7. Easy process:

Compared to other loans, the bike loan procedure is painless. If the documents uploaded by an applicant are perfect, loan disbursal is usually quick.

Step-by-step Procedure of a Two-Wheeler Loan

Applying for a bike loan and ensuring it is processed in time is essential, as big-ticket purchases generally offer superior results if executed in a time-bound manner. Here is a quick guide to help you prepare and apply for two-wheeler loans in India. The two-wheeler loan process is as given below:

Step 1:

Research the market and shortlist loan products that meet your needs. Check your eligibility and use EMI calculators offered by reputable lending institutions to compute your monthly outflow. You can try out this EMI calculator from Shriram Finance toc heck you EMI.

Step 2:

Approach lending institutions and gather information about loan terms and conditions before selecting a bank or NBFC to finance your two-wheeler purchase.

Step 3:

Fill out the online loan application form and upload documents specified by the lender to initiate the two-wheeler loan process. Documents include income proof, ITRs (for 3 years), bank statements, details of other loans, photo ID proof, etc.

Step 4:

The lender will verify your documents, calculate the loan amount based on the applicable eligibility criteria and approve the loan. The bike loan process is complete.

Step 5:

When you buy a two-wheeler with a loan, the lender has a claim on the vehicle until the loan is fully paid off. To formalise this arrangement, certain paperwork needs to be completed. The vehicle will be registered and marked as pledged to the lender in the registration certificate (RC book).

What’s the Conclusion?

Opting for a two-wheeler loan provides various benefits such as a wide range of options, affordable EMIs, tax benefits, an improved credit score, and manageable repayment plans. The application process involves researching, selecting a lender, filling out the form, and completing the necessary paperwork. A two-wheeler loan offers a convenient and affordable way to own your desired bike. Apply for the Shriram Two-Wheeler Loan and buy a fantastic bike for yourself or your loved ones today!


1. What is the procedure for applying for a two-wheeler loan?

To apply for a two-wheeler loan, research and select a product, fill in an online application form, upload documents (listed online) and obtain approval.

2. What documents are required to avail a two-wheeler loan?

Typically, you will need to submit documents like proof of identity (such as Aadhaar card, passport, or driving licence), proof of address (such as utility bills or rental agreement), income proof (such as salary slips or income tax returns), bank statements and photographs for a two-wheeler loan application.

3. What are the benefits of a two-wheeler loan?

Two-wheeler loans offer buyers practical terms that facilitate planned repayment. These loans ensure buyers find good deals and can achieve their dream of buying a fine bike.

4. Can I prepay my two-wheeler loan?

Yes, many lending institutions allow borrowers to prepay their two-wheeler loans. However, it's important to review the terms and conditions of the loan agreement to understand any prepayment penalties or charges that may apply. You also need to check your eligibility for the loan.

5. Is it possible to get a two-wheeler loan with a low credit score?

While having a good credit score improves the chances of loan approval, some banks may consider offering two-wheeler loans to individuals with low credit scores. However, the interest rates and loan terms may be less favourable compared to those with higher credit scores.

Get a two wheeler loan at low interest rates